of the statute, which can only be given effect by insisting that when the amount actually paid exceeds the exemption a tax based on that amount is then due. State v. Probate Court, 112 Minn. 279, 128 N. W. 18, 20.

When Tax Accrues on Gift Conditional on Reaching Certain Age.

The will provided that if a certain grandson E. B. survived the testator his estate should go to trustees for the grandson, the principal to be paid the grandson in instalments if he should reach various ages; and if he failed to reach the age designated the trustees should pay the balance in their hands to certain persons and charitable institutions designated in the will. The testator died May 25, 1905, and the case was governed by Minn. St. 1905, c. 288, ss. 1, 3, 4, 6 and 15. The court finds, construing these statutes, that they provide a tax to be paid within one year after the death of the decedent except as otherwise provided, and further, that under the express provisions and provisos to sections 3 and 15 a tax upon any gift which is limited, conditional, depending or determinable upon the happening of any contingency or future event, so that the true value cannot be presently ascertained, accrues and becomes payable only when the beneficiary is entitled to the possession or enjoyment thereof. Therefore under this will the probate court erred in imposing a tax upon the transfer of the property to the trustees, as they took no beneficial interest in the property. The transfer to them was simply a transfer to hold until the beneficiaries could be determined, which could only be done by the happening of an uncertain future event. Whether the grandson would ever be entitled to the property depends upon the contingency of his surviving to reach a certain age. The attorney general contended that the right to receive the net income from the property so long as the grandson lived is a life estate in the property, vesting in him at the time of the testator's death. But the court finds that the payment of income is limited in any event to a given number of years, hence, the legacy has none of the elements of a life estate, and the present value of the right to receive the income for a limited number of years cannot be ascertained for the value depends upon the contingency of his living until the limitation expires.

It follows, therefore, that a tax on the income will accrue and become payable as the time arrives for the payment to the beneficiary, and that it is the duty of the trustee to deduct the tax from the amount of any instalment of income to which he becomes

entitled and pay the amount thereof to the proper officer. State v. Probate Court, 100 Minn. 192, 196, 197, 110 N. W. 865.

Conditional Interests.

The testator who died in 1908 left property in trust to be paid the widow during her life, and while she remained unmarried the net income from the estate, while if she married she was to receive only one-fourth of the estate while the residue of the estate was bequeathed to the testator's two sons, and the court holds that the tax on this legacy is due and payable when the beneficiary goes into possession. State v. Probate Court, 112 Minn. 279, 128 N. W. 18, 20.

It was claimed that it was impossible to ascertain the value of an estate given to one until she marries when she was to have a different interest, as no one could say how long she would remain unmarried. The court, however, observes that when a particular individual claims an exemption from burdens which the law imposes upon all alike and bases his claim upon provisions of the statute which refer exclusively to the methods to be employed, it is the duty of the court to construe these provisions so as if possible to give effect to the statutory intent. Therefore when the valuation takes place it is to be made as of the date of the testator's death. The court avoids the difficulty by deciding that the probate court should determine what is the value of each instalment as it is actually paid to the beneficiary. From the value of the first payments should be deducted the exemption of ten thousand dollars and the tax computed upon the remainder. This avoids a possible result that the custodians of the estate would be at liberty to transfer it to the beneficiaries in instalments and in the meanwhile be unable to collect any tax whatever. State v. Probate Court, 112 Minn. 279, 128 N. W. 18, 20. The court relies somewhat on In re Millward, 6 Misc. (N. Y.) 425, 27 N. Y. Suppl. 286.

Valuation.

S. 17. The report of the appraisers shall be filed with the probate court, and from such report and other proof relating to any such estate before the probate court the court shall forthwith, as of course, determine the true and full value of all such estate and the amount of tax to which the same are liable; or the probate court may so determine the full and true value of all such estates and the amount of tax to which the same are liable without appointing appraisers. Omission of Means for Valuation of Life Estates is not Fatal.

The fact that the Minn. St. 1895, c. 288, does not provide any method for ascertaining the value of the life estate is not material;

for the court may in the absence of express direction adopt some practical way for ascertaining the value of the life estate for example, by referring to life and annuity tables. State v. Probate Court, 100 Minn. 192, 197, 110 N. W. 865.

Jurisdiction of Probate Court.

Minn. Const., a. 6, s. 7, limits the probate courts to jurisdiction over estates of deceased persons and persons under guardianship, and it was argued that the provisions of Minn. St. 1905, c. 288, as to the levying of assessments and collection of taxes was void. But the court holds that the jurisdiction given to the probate courts under the constitution includes every matter necessarily connected with the administration of the estate. The ascertainment of the amount of the inheritance tax is a judicial question, and being a necessary proceeding in the administration of the estate of deceased persons may be properly committed to the probate court. State v. Probate Court, 112 Minn. 279, 128 N. W. 18, 21.

Expenses of Administration Deducted.

The expenses of the administration of the estate of a deceased person are proper to be deducted in ascertaining the value of the estate for the purposes of taxation under the inheritance tax law. State v. Probate Court, 101 Minn. 485, 487, 112 N. W. 878.

Trustee's Fees not Deducted.

The will provides compensation for the trustee of five thousand dollars a year for ten years, or fifty thousand dollars; and the court holds that the compensation of the trustee, earned not in the administration of the estate but in the management thereof for the benefit of the legatees or devisees, does not come properly within the class or reason for exempting the administration expenses. Such services have no reference to closing the estate for the purpose of distribution to those entitled to it and are not required or essential to the rights of the heirs or legatees. Continuing trusts created for the benefit of those to whom the property ultimately passes are of voluntary creation and are intended for the preservation of the estate. The court relies somewhat on In re Gihon, 169 N. Y. 443, 62 N. E. 561, and In re Silliman, 79 N. Y. App. Div. 98, 80 N. Y. Suppl. 336; State v. Probate Court, 101 Minn. 485, 487, 112 N. W. 878.

[Sections omitted have not been construed and provided for the assessment and collection of the tax.]

THE LEGISLATION OF 1911.

Minn. St. 1911, c. 209, amended the existing law and was approved April 18, 1911. Minn. St. 1911, c. 372, was approved April 20, 1911, and went into effect July 1, 1911. It radically altered sections 1 and 2 of the existing law and provided further as follows:

S. 3. This act shall take effect and be in force from and after July 1, 1911 provided, however, that the provisions of this act shall apply only to legacies, inheritances, devises and transfers received from persons who shall die subsequent to the passage of this act; all gifts, legacies, inheritances and devises heretofore or hereafter received from any person who shall have died prior to the passage of this amendatory act shall be taxed and shall be subject to the provisions of sections 1 and 2 of chapter 288, Laws 1905, to the same extent and in the same manner as though this amendatory act had not been passed.

St. 1911, c. 209.

Taxable Transfers.

THE PRESENT ACT.

S. 1. A tax shall be and is hereby imposed upon any transfer of property, real, personal or mixed, or any interest therein, or income therefrom in trust or otherwise, to any person, association or corporation, except county, town or municipal corporation within the state, for strictly county, town or municipal purposes, in the following cases:

(1) When the transfer is by will or by the intestate laws of this state from any person dying possessed of the property while a resident of the state.

(2) When a transfer is by will or intestate law, of property within the state or within its jurisdiction and the decedent was a non-resident of the state at the time of his death.

(3) When the transfer is of property made by a resident or by a non-resident when such non-resident's property is within this state, or within its jurisdiction, by deed, grant, bargain, sale or gift, made in contemplation of the death of the grantor, vendor or donor, or intended to take effect in possession or enjoyment at or after such death.

(4) Such tax shall be imposed when any such person or corporation become beneficially entitled, in possession or expectancy to any property or the income thereof, by any such transfer whether made before or after the passage of this act.

(5) Whenever any person or corporation shall exercise a power of appointment derived from any disposition of property made either before or after the passage of this act, such appointment when made shall be deemed a transfer taxable under the provisions of this act in the same manner as though the property to which such appointment relates belonged absolutely to the donee of such power and had been bequeathed or devised by such donee by will; and whenever any person or corporation possessing such a power of appointment so derived shall omit or fail to exercise the same within the time provided therefor, in whole or in part a transfer taxable under the provisions of this act shall be deemed to take place to the extent of such omission or failure, in the same manner as though the persons or corporations thereby becoming entitled to the possession or enjoyment of the property to which such power related had succeeded thereto

by a will of the donee of the power failing to exercise such power, taking effect at the time of such omission or failure. (St. 1911, c. 372.)

[See notes to the Act of 1905, ante, p. 651.]

Rates and Exemptions.

S. 2. The tax so imposed shall be computed upon the true and full value in money of such property at the rates hereinafter prescribed and only upon the excess of the exemptions hereinafter granted.

S. 2a. When the property or any beneficial interest therein passes by any such transfer where the amount of the property shall exceed in value the exemption hereinafter specified and shall not exceed in value fifteen thousand dollars the tax hereby imposed shall be:

(1) Where the person entitled to any beneficial interest in such property shall be the wife, or lineal issue, at the rate of one per centum of the clear value of such interest in such property.

(2) Where the person or persons entitled to any beneficial interest in such property shall be the husband, lineal ancestor of the decedent or any child adopted as such in conformity with the laws of this state, or any child to whom such decedent for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent; provided, however, such relationship began at or before the child's fifteenth birthday, and was continuous for said ten years thereafter, or any lineal issue of such adopted or mutually acknowledged child, at the rate of one and one-half per centum of the clear value of such interest in such property.

(3) Where the person or persons entitled to any beneficial interest in such property shall be the brother or sister or a descendant of a brother or sister of the decedent, a wife or widow of a son, or the husband of a daughter of the decedent, at the rate of three per centum of the clear value of such interest in such property.

(4) Where the person or persons entitled to any beneficial interest in such property shall be the brother or sister of the father or mother or a descendant of a brother or sister of the father or mother of the decedent, at the rate of four per centum of the clear value of such interest in such property.

(5) Where the person or persons entitled to any beneficial interest in such property shall be in any other degree of collateral consanguinity than is hereinbefore stated, or shall be a stranger in blood to the decedent, or shall be a body politic or corporate, at the rate of five per centum of the clear value of such interest in such property.

S. 2b. The foregoing rates in section 2a are for convenience termed the primary

rates.

When the amount of the clear value of such property or interest exceed fifteen thousand dollars, the rates of tax upon such excess shall be as follows:

(1) Upon all in excess of fifteen thousand dollars and up to thirty thousand dollars, one and one-half times the primary rates.

(2) Upon all in excess of thirty thousand dollars, and up to fifty thousand dollars, two times the primary rates.

(3) Upon all in excess of fifty thousand dollars and up to one hundred thousand dollars, two and one-half times the primary rates.

(4) Upon all in excess of one hundred thousand dollars, three times the primary